Exelon Reports First Quarter 2024 Results

Rhea-AI Summary

Exelon (Nasdaq: EXC) reported a GAAP Net Income of $0.66 per share and Adjusted Operating Earnings of $0.68 per share for the first quarter of 2024. The company affirmed its full-year 2024 Adjusted Operating Earnings guidance range of $2.40-$2.50 per share and reaffirmed its fully regulated operating EPS growth target of 5-7% from 2023 to 2027. Exelon achieved top reliability performance at all utilities and made progress on regulatory fronts. Despite challenges like mild weather and storms, Exelon maintains strong operational performance and projects annualized EPS growth of 5-7% through 2027.

Positive

• Exelon reported a GAAP Net Income of $0.66 per share and Adjusted Operating Earnings of $0.68 per share for the first quarter of 2024.

• The company affirmed its full-year 2024 Adjusted Operating Earnings guidance range of $2.40-$2.50 per share.

• Exelon reaffirmed its fully regulated operating EPS growth target of 5-7% from 2023 to 2027.

• The company achieved top reliability performance at all utilities, with ComEd and PHI excelling in outage frequency and duration.

• PECO filed electric and gas distribution rate cases seeking increases to support investments in modernized energy infrastructure.

Negative

• Exelon's GAAP Net Income and Adjusted Operating Earnings for the first quarter of 2024 decreased compared to the same period in 2023.

• Higher utility earnings were offset by increased storm costs, lower allowed ROE, and other factors, impacting Exelon's financial performance.

• ComEd's GAAP Net Income and Adjusted Operating Earnings decreased in the first quarter of 2024 due to various factors affecting electric distribution earnings.

• PECO's GAAP Net Income and Adjusted Operating Earnings decreased in the first quarter of 2024, primarily due to an increase in storm costs.

Insights

Financial Analyst

The reported GAAP Net Income of $0.66 per share and Adjusted Operating Earnings of $0.68 per share indicate a slight decrease from the previous year's $0.67 and $0.70 respectively. This marginal decline, while not alarming, suggests a tightening of margins or increased costs that investors should monitor closely. The affirmation of guidance range earnings of $2.40-$2.50 per share provides a stable outlook, signaling management's confidence in predictable performance amidst market uncertainties.

From an investment perspective, the regulated utility sector offers a degree of predictability, underscored by the reaffirmed EPS growth target of 5-7% annually through 2027. Such growth expectations are supported by the rate increases at BGE and PHI and are in line with industry standards for a utility company which typically offers lower, but more stable returns compared to high-growth sectors.

The financing activities, including the issuance of notes and bonds, suggest active management of their debt profile for optimizing capital structure, which could enhance shareholder value in the long term if managed efficiently. The impact of interest expenses and operating costs, as well as investments in infrastructure, are areas to watch as they could either drive future growth or weigh on profitability.

Energy Sector Analyst

The focus on regulatory developments and infrastructure investments, such as ComEd's Grid Plan and rate case filings across various jurisdictions, is indicative of Exelon's strategy to enhance energy distribution frameworks. Rate base increases can lead to higher revenues, however, they are contingent upon regulatory approval, adding a layer of uncertainty. The early completion of ComEd's rehearing process is a positive sign for regulatory relationships.

The initiative to push for modernized infrastructure resonates with the broader industry shift towards more reliable and cleaner energy. The long-term perspective on energy transformation comes with substantial capital expenditures, which have the potential to generate future returns but also involve considerable execution risk. The settlement in Delmarva Power's rate case and the filings in Pennsylvania and Delaware exemplify proactive engagement with regulatory bodies to secure the revenue streams necessary for these ambitious plans.

Utilities Market Analyst

Exelon's report showcases a strong operational performance, especially considering the challenges posed by weather conditions. The company's ability to maintain top quartile reliability performance is commendable and reflects positively on its operational efficacy, a critical factor for investor confidence in utility stocks. This performance is key, as utilities are often valued based on their reliability and service quality, which drive consumer and regulatory satisfaction.

The emphasis on safety with the introduction of a Serious Injury Incidence Rate is a forward-thinking measure that might appeal to socially conscious investors and could help mitigate long-term operational risk. With utility companies increasingly scrutinized for their safety standards, this could serve as a benchmarking tool and potentially reduce incidents that lead to financial and reputational damage.

Earnings Release Highlights

• GAAP Net Income of $0.66 per share and Adjusted (non-GAAP) Operating Earnings of $0.68 per share for the first quarter of 2024
• Affirming full year 2024 Adjusted (non-GAAP) Operating Earnings guidance range of $2.40-$2.50 per share
• Reaffirming fully regulated operating EPS compounded annual growth target of 5-7% from 2023 to 2027
• Achieved top quartile reliability performance at all utilities, with ComEd and PHI achieving top decile in both outage frequency and outage duration
• ComEd refiled its Multi-Year Grid Plan in March as directed by the Illinois Commerce Commission (ICC), with a final order expected before the end of 2024
• PECO filed electric and gas distribution rate cases with the Pennsylvania Public Utility Commission (PAPUC) in March seeking an increase in base rates to support significant investments in modernized energy infrastructure to maintain reliability, help enable wider adoption of cleaner energy resources, and provide customers with enhanced levels of service
• A settlement was approved in April by the Delaware Public Service Commission (DPSC) in Delmarva Power’s electric base rate case
• An order in ComEd’s Multi-Year Rate Plan Rehearing was received in April, increasing ComEd’s revenue requirement until approval of its refiled Grid Plan

CHICAGO--(BUSINESS WIRE)-- Exelon Corporation (Nasdaq: EXC) today reported its financial results for the first quarter of 2024.

"Through the first quarter, Exelon is on track for another year of operational excellence while delivering on our financial guidance," said President and CEO Calvin Butler. "We are encouraged that we are making progress on the regulatory front, with ComEd's rehearing process complete almost two months early. Additionally, our Exelon team is leading the industry with our innovative approach on safety, now measuring our performance through a Serious Injury Incidence Rate, reaffirming our commitment to the safety of our employees and community members."

"We delivered first quarter 2024 adjusted operating earnings of $0.68 per share while maintaining strong operational performance," said Exelon Chief Financial Officer Jeanne Jones. "Despite mild weather and a challenging storm season, we remain on track to deliver full-year operating earnings of $2.40 to $2.50 per share in 2024 and continue to affirm our sustained growth over the coming years to support the energy transformation in our communities, projecting annualized earnings per share (EPS) growth of 5% to 7% through 2027."

First Quarter 2024

Exelon's GAAP Net Income for the first quarter of 2024 decreased to $0.66 per share from $0.67 per share in the first quarter of 2023. Adjusted (non-GAAP) Operating Earnings for the first quarter of 2024 decreased to $0.68 per share from $0.70 per share in the first quarter of 2023. For the reconciliations of GAAP Net Income to Adjusted (non-GAAP) Operating Earnings, refer to the tables beginning on page 4.

GAAP Net Income and Adjusted (non-GAAP) Operating Earnings in the first quarter of 2024 primarily reflect:

• Higher utility earnings primarily due to rate increases at BGE and PHI. This was partially offset by higher operating expenses due to increased storm costs at PECO and BGE, lower electric distribution earnings from lower allowed ROE and the absence of a return on pension asset at ComEd, and lower carrying cost recovery related to the carbon mitigation credit (CMC) regulatory asset at ComEd.
• Higher costs at the Exelon holding company primarily due to higher interest expense.

Operating Company Results¹

ComEd

ComEd's first quarter of 2024 GAAP Net Income decreased to $193 million from $241 million in the first quarter of 2023. ComEd's Adjusted (non-GAAP) Operating Earnings for the first quarter of 2024 decreased to $219 million from $251 million in the first quarter of 2023, primarily due to decreases in electric distribution earnings (reflecting lower allowed ROE due to U.S. Treasury rates no longer applying to distribution revenue) and carrying costs related to the CMC regulatory asset. Due to revenue decoupling, ComEd's distribution earnings are not affected by actual weather or customer usage patterns.

PECO

PECO’s first quarter of 2024 GAAP Net Income decreased to $149 million from $166 million in the first quarter of 2023. PECO's Adjusted (non-GAAP) Operating Earnings for the first quarter of 2024 decreased to $149 million from $166 million in the first quarter of 2023, primarily due to an increase in storm costs partially offset by less unfavorable weather.

___________
¹ Exelon’s four business units include ComEd, which consists of electricity transmission and distribution operations in northern Illinois; PECO, which consists of electricity transmission and distribution operations and retail natural gas distribution operations in southeastern Pennsylvania; BGE, which consists of electricity transmission and distribution operations and retail natural gas distribution operations in central Maryland; and PHI, which consists of electricity transmission and distribution operations in the District of Columbia and portions of Maryland, Delaware, and New Jersey and retail natural gas distribution operations in northern Delaware.

BGE

BGE’s first quarter of 2024 GAAP Net Income increased to $264 million from $200 million in the first quarter of 2023. BGE's Adjusted (non-GAAP) Operating Earnings for the first quarter of 2024 increased to $264 million from $199 million in the first quarter of 2023, primarily due to increased revenue due to distribution rate increases. Due to revenue decoupling, BGE's distribution earnings are not affected by actual weather or customer usage patterns.

PHI

PHI’s first quarter of 2024 GAAP Net Income increased to $168 million from $155 million in the first quarter of 2023. PHI’s Adjusted (non-GAAP) Operating Earnings for the first quarter of 2024 decreased to $168 million from $173 million in the first quarter of 2023, primarily due to increase in interest expense and operating expenses, partially offset by distribution rate increases. Due to revenue decoupling, PHI's distribution earnings related to Pepco Maryland, DPL Maryland, Pepco District of Columbia, and ACE are not affected by actual weather or customer usage patterns.

Recent Developments and First Quarter Highlights

• Dividend: On April 30, 2024, Exelon's Board of Directors declared a regular quarterly dividend of $0.38 per share on Exelon's common stock for the second quarter of 2024. The dividend is payable on June 14, 2024, to shareholders of record of Exelon as of 5 p.m. Eastern time on Monday, May 13, 2024.
• Rate Case Developments:
  • ComEd Refiled Multi-Year Grid Plan: On March 13, 2024, ComEd refiled its Grid Plan with the ICC. On March 15, 2024, ComEd filed a petition to adjust its multi-year rate plan revenue requirement to increase its distribution rates by $302 million in 2024, $89 million in 2025, $136 million in 2026 and $143 million in 2027, reflecting an ROE 8.905%. ComEd currently expects a decision in the fourth quarter of 2024, but cannot predict if the ICC will approve the application as filed.
  • ComEd Rehearing on Multi-Year Rate Plan: On April 18, 2024, the ICC issued an order which increased the revenue requirements by $150 million in 2024, $186 million in 2025, $221 million in 2026 and $253 million in 2027, reflecting an ROE of 8.905%.
  • ComEd Distribution Formula Rate Reconciliation: On April 26, 2024, ComEd filed its proposed Delivery Reconciliation Amount with the ICC requesting $627 million under Rider Delivery Service Pricing Reconciliation which allows for the reconciliation of the revenue requirement in effect. The 2024 filing reconciles those rates with the actual delivery service costs incurred in 2023. ComEd currently expects a decision in the fourth quarter of 2024, but cannot predict if the ICC will approve the application as filed.
  • PECO Pennsylvania Electric Distribution Rate Case: On March 28, 2024, PECO filed an application with the PAPUC to increase its annual Electric rates by $464 million, which is partially offset by a one-time credit of $64 million in 2025, reflecting an ROE of 10.95%. PECO currently expects a decision in the fourth quarter of 2024 but cannot predict if the PAPUC will approve the application as filed.
  • PECO Pennsylvania Natural Gas Distribution Rate Case: On March 28, 2024, PECO filed an application with the PAPUC to increase its annual natural gas rates by $111 million, reflecting an ROE of 11.15%. PECO currently expects a decision in the fourth quarter of 2024 but cannot predict if the PAPUC will approve the application as filed.
  • DPL Delaware Electric Distribution Base Rate Case: On April 18, 2024, the DEPSC approved an increase in DPL's annual electric distribution base rates of $28 million, reflecting an ROE of 9.6%. Interim rates went into effect on July 15, 2023, subject to refund. Rates associated with the approved order were effective on April 24, 2024.
• Financing Activities:
  • On Feb. 27, 2024, Exelon Corporate issued $1,700 million of notes, consisting of $650 million of its 5.15% notes due March 15, 2029, $650 million of its 5.45% notes due March 15, 2034, and $400 million of its 5.60% notes due March 15, 2053. Exelon used the proceeds to repay the SMBC Term Loan, outstanding commercial paper, and for general corporate purposes.
  • On March 4, 2024, Pepco issued $675 million of its First Mortgage Bonds, consisting of $375 million of its First Mortgage 5.20% Series Bonds, due March 15, 2034 and $300 million of its First Mortgage 5.50% Series Bonds, due March 15, 2054. Pepco used the proceeds to refinance existing indebtedness, refinance outstanding commercial paper, and for general corporate purposes.
  • On March 20, 2024, ACE entered into the ACE Purchase Agreement for the offer and sale of $75 million aggregate principal amount of its First Mortgage Bonds, 5.55% Series due March 20, 2054. ACE used the proceeds to repay existing indebtedness and to fund other general corporate purposes.
  • On March 20, 2024, DPL entered into the DPL Purchase Agreement for the offer and sale of $100 million of its First Mortgage 5.24% Series Bonds, due March 20, 2034, and $75 million of its First Mortgage 5.55% Series, due March 20, 2054. DPL used the proceeds to repay existing indebtedness and to fund other general corporate purposes.

Adjusted (non-GAAP) Operating Earnings Reconciliation

Adjusted (non-GAAP) Operating Earnings for the first quarter of 2024 do not include the following items (after tax) that were included in reported GAAP Net Income:

(in millions, except per share amounts)	Exelon Earnings per Diluted Share			Exelon			ComEd			PECO			BGE			PHI
2024 GAAP Net Income	$	0.66		$	658		$	193		$	149		$	264		$	168
Change in FERC Audit Liability (net of taxes of $9)		0.03			27			26			—			—			—
2024 Adjusted (non-GAAP) Operating Earnings	$	0.68		$	685		$	219		$	149		$	264		$	168

Adjusted (non-GAAP) Operating Earnings for the first quarter of 2023 do not include the following items (after tax) that were included in reported GAAP Net Income:

(in millions, except per share amounts)	Exelon Earnings per Diluted Share			Exelon			ComEd			PECO			BGE			PHI
2023 GAAP Net Income	$	0.67		$	669		$	241		$	166		$	200		$	155
Mark-to-Market Impact of Economic Hedging Activities (net of taxes of $0)		—			(1	)		—			—			—			—
Change in Environmental Liabilities (net of taxes of $7)		0.02			18			—			—			—			18
Change in FERC Audit Liability (net of taxes of $4)		0.01			11			11			—			—			—
Separation Costs (net of taxes of $0)		—			(1	)		—			—			—			—
2023 Adjusted (non-GAAP) Operating Earnings	$	0.70		$	696		$	251		$	166		$	199		$	173
__________ Note: Amounts may not sum due to rounding. Unless otherwise noted, the income tax impact of each reconciling item between GAAP Net Income and Adjusted (non-GAAP) Operating Earnings is based on the marginal statutory federal and state income tax rates for each Registrant, taking into account whether the income or expense item is taxable or deductible, respectively, in whole or in part. For all items, the marginal statutory income tax rates for 2024 and 2023 ranged from 24.0% to 29.0%.

Webcast Information

Exelon will discuss first quarter 2024 earnings in a conference call scheduled for today at 9 a.m. Central Time (10 a.m. Eastern Time). The webcast and associated materials can be accessed at https://investors.exeloncorp.com.

About Exelon

Exelon (Nasdaq: EXC) is a Fortune 250 company and the nation’s largest utility company, serving more than 10.5 million customers through six fully regulated transmission and distribution utilities — Atlantic City Electric (ACE), Baltimore Gas and Electric (BGE), Commonwealth Edison (ComEd), Delmarva Power & Light (DPL), PECO Energy Company (PECO), and Potomac Electric Power Company (Pepco). 20,000 Exelon employees dedicate their time and expertise to supporting our communities through reliable, affordable and efficient energy delivery, workforce development, equity, economic development and volunteerism. Follow @Exelon on Twitter | X.

Non-GAAP Financial Measures

In addition to net income as determined under generally accepted accounting principles in the United States (GAAP), Exelon evaluates its operating performance using the measure of Adjusted (non-GAAP) Operating Earnings because management believes it represents earnings directly related to the ongoing operations of the business. Adjusted (non-GAAP) Operating Earnings exclude certain costs, expenses, gains and losses, and other specified items. This measure is intended to enhance an investor’s overall understanding of period over period operating results and provide an indication of Exelon’s baseline operating performance excluding items that are considered by management to be not directly related to the ongoing operations of the business. In addition, this measure is among the primary indicators management uses as a basis for evaluating performance, allocating resources, setting incentive compensation targets, and planning and forecasting of future periods. Adjusted (non-GAAP) Operating Earnings is not a presentation defined under GAAP and may not be comparable to other companies’ presentation. Exelon has provided the non-GAAP financial measure as supplemental information and in addition to the financial measures that are calculated and presented in accordance with GAAP. Adjusted (non-GAAP) Operating Earnings should not be deemed more useful than, a substitute for, or an alternative to the most comparable GAAP Net Income measures provided in this earnings release and attachments. This press release and earnings release attachments provide reconciliations of Adjusted (non-GAAP) Operating Earnings to the most directly comparable financial measures calculated and presented in accordance with GAAP, are posted on Exelon’s website: https://investors.exeloncorp.com, and have been furnished to the Securities and Exchange Commission on Form 8-K on May 2, 2024.

Cautionary Statements Regarding Forward-Looking Information

This press release contains certain forward-looking statements within the meaning of federal securities laws that are subject to risks and uncertainties. Words such as “could,” “may,” “expects,” “anticipates,” “will,” “targets,” “goals,” “projects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “predicts,” “should,” and variations on such words, and similar expressions that reflect our current views with respect to future events and operational, economic, and financial performance, are intended to identify such forward-looking statements.

The factors that could cause actual results to differ materially from the forward-looking statements made by Exelon Corporation, Commonwealth Edison Company, PECO Energy Company, Baltimore Gas and Electric Company, Pepco Holdings LLC, Potomac Electric Power Company, Delmarva Power & Light Company, and Atlantic City Electric Company (Registrants) include those factors discussed herein, as well as the items discussed in (1) the Registrants' 2023 Annual Report on Form 10-K filed with the SEC in (a) Part I, ITEM 1A. Risk Factors, (b) Part II, ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations, and (c) Part II, ITEM 8. Financial Statements and Supplementary Data: Note 18, Commitments and Contingencies; (2) the Registrants' First Quarter 2024 Quarterly Report on Form 10-Q (to be filed on May 2, 2024) in (a) Part II, ITEM 1A. Risk Factors, (b) Part I, ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations, and (c) Part I, ITEM 1. Financial Statements: Note 11, Commitments and Contingencies; and (3) other factors discussed in filings with the SEC by the Registrants.

Investors are cautioned not to place undue reliance on these forward-looking statements, whether written or oral, which apply only as of the date of this press release. None of the Registrants undertakes any obligation to publicly release any revision to its forward-looking statements to reflect events or circumstances after the date of this press release.

Earnings Release Attachments Table of Contents
Consolidating Statement of Operations	2
Consolidated Balance Sheets	3
Consolidated Statements of Cash Flows	5
Reconciliation of GAAP Net Income to Adjusted (non-GAAP) Operating Earnings and Analysis of Earnings	6
Statistics
ComEd	7
PECO	7
BGE	9
Pepco	10
DPL	11
ACE	12

Consolidating Statements of Operations (unaudited) (in millions)
	ComEd				PECO				BGE				PHI				Other (a)				Exelon
Three Months Ended March 31, 2024
Operating revenues	$	2,095			$	1,054			$	1,297			$	1,606			$	(9	)		$	6,043
Operating expenses
Purchased power and fuel		907				403				464				636				—				2,410
Operating and maintenance		418				293				264				325				(29	)			1,271
Depreciation and amortization		362				104				150				246				17				879
Taxes other than income taxes		94				51				89				128				9				371
Total operating expenses		1,781				851				967				1,335				(3	)			4,931
Gain on sales of assets and businesses		—				2				—				—				—				2
Operating income (loss)		314				205				330				271				(6	)			1,114
Other income and (deductions)
Interest expense, net		(122	)			(55	)			(50	)			(90	)			(151	)			(468	)
Other, net		20				9				8				27				11				75
Total other income and (deductions)		(102	)			(46	)			(42	)			(63	)			(140	)			(393	)
Income (loss) before income taxes		212				159				288				208				(146	)			721
Income taxes		19				10				24				40				(30	)			63
Net income (loss) attributable to common shareholders	$	193			$	149			$	264			$	168			$	(116	)		$	658
Three Months Ended March 31, 2023
Operating revenues	$	1,667			$	1,112			$	1,257			$	1,536			$	(9	)		$	5,563
Operating expenses
Purchased power and fuel		488				484				492				627				—				2,091
Operating and maintenance		337				270				222				309				13				1,151
Depreciation and amortization		338				98				167				241				16				860
Taxes other than income taxes		93				50				83				120				9				355
Total operating expenses		1,256				902				964				1,297				38				4,457
Operating income (loss)		411				210				293				239				(47	)			1,106
Other income and (deductions)
Interest expense, net		(117	)			(48	)			(44	)			(76	)			(127	)			(412	)
Other, net		18				8				3				26				54				109
Total other income and (deductions)		(99	)			(40	)			(41	)			(50	)			(73	)			(303	)
Income (loss) before income taxes		312				170				252				189				(120	)			803
Income taxes		71				4				52				34				(27	)			134
Net income (loss) attributable to common shareholders	$	241			$	166			$	200			$	155			$	(93	)		$	669
Change in net income (loss) from 2023 to 2024	$	(48	)		$	(17	)		$	64			$	13			$	(23	)		$	(11	)

__________
(a)		Other primarily includes eliminating and consolidating adjustments, Exelon’s corporate operations, shared service entities, and other financing and investment activities.

Exelon Consolidated Balance Sheets (unaudited) (in millions)
		March 31, 2024				December 31, 2023
Assets
Current assets
Cash and cash equivalents		$	720			$	445
Restricted cash and cash equivalents			489				482
Accounts receivable
Customer accounts receivable			2,896				2,659
Customer allowance for credit losses			(346	)			(317	)
Customer accounts receivable, net			2,550				2,342
Other accounts receivable			1,131				1,101
Other allowance for credit losses			(96	)			(82	)
Other accounts receivable, net			1,035				1,019
Inventories, net
Fossil fuel			37				94
Materials and supplies			751				707
Regulatory assets			2,035				2,215
Other			595				473
Total current assets			8,212				7,777
Property, plant, and equipment, net			74,604				73,593
Deferred debits and other assets
Regulatory assets			8,701				8,698
Goodwill			6,630				6,630
Receivable related to Regulatory Agreement Units			3,382				3,232
Investments			263				251
Other			1,419				1,365
Total deferred debits and other assets			20,395				20,176
Total assets		$	103,211			$	101,546
		March 31, 2024				December 31, 2023
Liabilities and shareholders’ equity
Current liabilities
Short-term borrowings		$	2,206			$	2,523
Long-term debt due within one year			503				1,403
Accounts payable			2,814				2,846
Accrued expenses			1,076				1,375
Payables to affiliates			5				5
Customer deposits			419				411
Regulatory liabilities			400				389
Mark-to-market derivative liabilities			29				74
Unamortized energy contract liabilities			7				8
Other			516				557
Total current liabilities			7,975				9,591
Long-term debt			42,271				39,692
Long-term debt to financing trusts			390				390
Deferred credits and other liabilities
Deferred income taxes and unamortized investment tax credits			12,199				11,956
Regulatory liabilities			9,706				9,576
Pension obligations			1,569				1,571
Non-pension postretirement benefit obligations			523				527
Asset retirement obligations			270				267
Mark-to-market derivative liabilities			80				106
Unamortized energy contract liabilities			25				27
Other			2,142				2,088
Total deferred credits and other liabilities			26,514				26,118
Total liabilities			77,150				75,791
Commitments and contingencies
Shareholders’ equity
Common stock			21,129				21,114
Treasury stock, at cost			(123	)			(123	)
Retained earnings			5,767				5,490
Accumulated other comprehensive loss, net			(712	)			(726	)
Total shareholders’ equity			26,061				25,755
Total liabilities and shareholders’ equity		$	103,211			$	101,546

Exelon Consolidated Statements of Cash Flows (unaudited) (in millions)
		Three Months Ended March 31,
			2024				2023
Cash flows from operating activities
Net income		$	658			$	669
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation, amortization, and accretion			880				860
Gain on sales of assets and businesses			(2	)			—
Deferred income taxes and amortization of investment tax credits			46				113
Net fair value changes related to derivatives			1				—
Other non-cash operating activities			39				(138	)
Changes in assets and liabilities:
Accounts receivable			(309	)			106
Inventories			12				102
Accounts payable and accrued expenses			(238	)			(482	)
Collateral received (paid), net			7				(214	)
Income taxes			21				23
Regulatory assets and liabilities, net			252				(324	)
Pension and non-pension postretirement benefit contributions			(111	)			(44	)
Other assets and liabilities			(264	)			(187	)
Net cash flows provided by operating activities			992				484
Cash flows from investing activities
Capital expenditures			(1,767	)			(1,881	)
Proceeds from sales of assets and businesses			2				—
Other investing activities			(2	)			10
Net cash flows used in investing activities			(1,767	)			(1,871	)
Cash flows from financing activities
Changes in short-term borrowings			(317	)			(1,130	)
Proceeds from short-term borrowings with maturities greater than 90 days			150				—
Repayments on short-term borrowings with maturities greater than 90 days			(150	)			(150	)
Issuance of long-term debt			2,625				3,925
Retirement of long-term debt			(901	)			(857	)
Dividends paid on common stock			(381	)			(358	)
Proceeds from employee stock plans			11				10
Other financing activities			(55	)			(60	)
Net cash flows provided by financing activities			982				1,380
Increase (decrease) in cash, restricted cash, and cash equivalents			207				(7	)
Cash, restricted cash, and cash equivalents at beginning of period			1,101				1,090
Cash, restricted cash, and cash equivalents at end of period		$	1,308			$	1,083

Exelon Reconciliation of GAAP Net Income (Loss) to Adjusted (non-GAAP) Operating Earnings and Analysis of Earnings Three Months Ended March 31, 2024 and 2023 (unaudited) (in millions, except per share data)
	Exelon Earnings per Diluted Share				ComEd				PECO				BGE				PHI				Other (a)				Exelon
2023 GAAP Net Income (Loss)	$	0.67			$	241			$	166			$	200			$	155			$	(93	)		$	669
Mark-to-Market Impact of Economic Hedging Activities (net of taxes of $0)		—				—				—				—				—				(1	)			(1	)
Change in Environmental Liabilities (net of taxes of $7)		0.02				—				—				—				18				—				18
Change in FERC Audit Liability (net of taxes of $4)		0.01				11				—				—				—				—				11
Separation Costs (net of taxes of $0) (1)		—				—				—				—				—				(1	)			(1	)
2023 Adjusted (non-GAAP) Operating Earnings (Loss)	$	0.70			$	251			$	166			$	199			$	173			$	(93	)		$	696
Year Over Year Effects on Adjusted (non-GAAP) Operating Earnings:
Weather	$	0.02			$	—		(b)	$	18			$	—		(b)	$	4		(b)	$	—			$	22
Load		—				—		(b)		(3	)			—		(b)		(1	)	(b)		—				(4	)
Distribution and Transmission Rates (2)		0.09				(19	)	(c)		3		(c)		85		(c)		24		(c)		—				93
Other Energy Delivery (3)		0.07				64		(c)		(1	)	(c)		(6	)	(c)		17		(c)		—				74
Operating and Maintenance Expense (4)		(0.08	)			(54	)			(15	)			(4	)			(30	)			27				(76	)
Pension and Non-Pension Postretirement Benefits		(0.01	)			(4	)			(2	)			—				—				—				(6	)
Depreciation and Amortization Expense (5)		(0.03	)			(17	)			(5	)			(6	)			(4	)			(1	)			(33	)
Interest Expense and Other (6)		(0.08	)			(2	)			(12	)			(4	)			(15	)			(48	)			(81	)
Total Year Over Year Effects on Adjusted (non-GAAP) Operating Earnings	$	(0.02	)		$	(32	)		$	(17	)		$	65			$	(5	)		$	(22	)		$	(11	)
2024 GAAP Net Income (Loss)	$	0.66			$	193			$	149			$	264			$	168			$	(116	)		$	658
Change in FERC Audit Liability (net of taxes of $9)		0.03				26				—				—				—				1				27
2024 Adjusted (non-GAAP) Operating Earnings (Loss)	$	0.68			$	219			$	149			$	264			$	168			$	(115	)		$	685

Note:
Amounts may not sum due to rounding.
Unless otherwise noted, the income tax impact of each reconciling item between GAAP Net Income and Adjusted (non-GAAP) Operating Earnings is based on the marginal statutory federal and state income tax rates for each Registrant, taking into account whether the income or expense item is taxable or deductible, respectively, in whole or in part. For all items, the marginal statutory income tax rates for 2024 and 2023 ranged from 24.0% to 29.0%.
	(a)		Other primarily includes eliminating and consolidating adjustments, Exelon’s corporate operations, shared service entities, and other financing and investment activities.
	(b)		For ComEd, BGE, Pepco, DPL Maryland, and ACE, customer rates are adjusted to eliminate the impacts of weather and customer usage on distribution volumes.
	(c)		ComEd's distribution rate revenues increase or decrease as fully recoverable costs fluctuate. For other regulatory recovery mechanisms, including transmission formula rates and riders across the utilities, revenues increase and decrease i) as fully recoverable costs fluctuate (with no impact on net earnings), and ii) pursuant to changes in rate base, capital structure and ROE (which impact net earnings).
	(1)		Represents costs related to the separation primarily comprised of system-related costs, third-party costs paid to advisors, consultants, lawyers, and other experts assisting in the separation, and employee-related severance costs, which are recorded in Operating and maintenance expense and Other, net.
	(2)		For ComEd, reflects decreased electric distribution revenues due to lower allowed electric distribution ROE and absence of a return on the pension asset. For BGE, reflects increased revenue due to distribution rate increases. For PHI, reflects increased revenue primarily due to distribution increases.
	(3)		For ComEd, reflects increased electric distribution, transmission, and energy efficiency revenues due to higher fully recoverable costs and reflects lower carrying cost recovery related to the CMC regulatory asset. For BGE, reflects lower gas revenues due to lower gas prices. For PHI, reflects higher transmission revenues due to higher fully recoverable costs.
	(4)		Represents Operating and maintenance expense, excluding pension and non-pension postretirement benefits. For ComEd, reflects an updated rate of capitalization of certain overhead costs and increased contracting costs. For PECO and BGE, primarily reflects increased storm costs. For PHI, primarily reflects increased contracting costs, storm costs, and credit loss expense. For Corporate, primarily reflects a decrease in Operating and maintenance expense with an offsetting decrease in other income for costs billed to Constellation for services provided by Exelon through the TSA.
	(5)		Reflects ongoing capital expenditures across all utilities.
	(6)		For PHI, primarily reflects an increase in interest expense and an increase in taxes other than income. For Corporate, primarily reflects an increase in interest expense and a decrease in other income for costs billed to Constellation for services provided by Exelon through the TSA, with an offsetting decrease in Operating and maintenance expense.

ComEd Statistics Three Months Ended March 31, 2024 and 2023
	Electric Deliveries (in GWhs)										Revenue (in millions)
	2024		2023		% Change			Weather - Normal % Change				2024			2023		% Change
Electric Deliveries and Revenues(a)
Residential	6,214		6,234		(0.3	)%		(0.1	)%		$	918		$	836		9.8	%
Small commercial & industrial	7,244		7,198		0.6	%		(0.4	)%			594			361		64.5	%
Large commercial & industrial	6,934		6,559		5.7	%		2.5	%			320			84		281.0	%
Public authorities & electric railroads	220		227		(3.1	)%		(3.1	)%			17			10		70.0	%
Other(b)	—		—		n/a			n/a				227			217		4.6	%
Total electric revenues(c)	20,612		20,218		1.9	%		0.6	%			2,076			1,508		37.7	%
Other Revenues(d)												19			159		(88.1	)%
Total Electric Revenues											$	2,095		$	1,667		25.7	%
Purchased Power											$	907		$	488		85.9	%

							% Change
Heating and Cooling Degree-Days	2024		2023		Normal		From 2023		From Normal
Heating Degree-Days	2,568		2,671		3,053		(3.9) %		(15.9) %

Number of Electric Customers	2024		2023
Residential	3,754,505		3,729,983
Small commercial & industrial	397,715		391,662
Large commercial & industrial	2,023		1,881
Public authorities & electric railroads	5,821		4,790
Total	4,160,064		4,128,316

__________
	(a)		Reflects revenues from customers purchasing electricity directly from ComEd and customers purchasing electricity from a competitive electric generation supplier, as all customers are assessed delivery charges. For customers purchasing electricity from ComEd, revenues also reflect the cost of energy and transmission.
	(b)		Includes transmission revenue from PJM, wholesale electric revenue, and mutual assistance revenue.
	(c)		Includes operating revenues from affiliates totaling $2 million and $3 million for the three months ended March 31, 2024 and 2023, respectively.
	(d)		Includes alternative revenue programs and late payment charges.

PECO Statistics Three Months Ended March 31, 2024 and 2023
	Electric and Natural Gas Deliveries										Revenue (in millions)
	2024		2023		% Change			Weather- Normal % Change				2024				2023		% Change
Electric (in GWhs)
Electric Deliveries and Revenues(a)
Residential	3,455		3,358		2.9	%		(1.2	)%		$	520			$	519		0.2	%
Small commercial & industrial	1,891		1,843		2.6	%		(1.7	)%			126				135		(6.7	)%
Large commercial & industrial	3,355		3,237		3.6	%		2.5	%			57				65		(12.3	)%
Public authorities & electric railroads	179		168		6.5	%		7.1	%			7				8		(12.5	)%
Other(b)	—		—		n/a			n/a				74				68		8.8	%
Total electric revenues(c)	8,880		8,606		3.2	%		0.2	%			784				795		(1.4	)%
Other Revenues(d)												(2	)			—		n/a
Total Electric Revenues												782				795		(1.6	)%
Natural Gas (in mmcfs)
Natural Gas Deliveries and Revenues(e)
Residential	18,895		17,190		9.9	%		0.6	%			193				223		(13.5	)%
Small commercial & industrial	9,488		8,699		9.1	%		(0.8	)%			64				75		(14.7	)%
Large commercial & industrial	16		29		(44.8	)%		(12.2	)%			—				1		(100.0	)%
Transportation	6,899		7,014		(1.6	)%		(3.0	)%			8				8		—	%
Other(f)	—		—		n/a			n/a				7				9		(22.2	)%
Total natural gas revenues(g)	35,298		32,932		7.2	%		(0.5	)%			272				316		(13.9	)%
Other Revenues(d)												—				1		(100.0	)%
Total Natural Gas Revenues												272				317		(14.2	)%
Total Electric and Natural Gas Revenues											$	1,054			$	1,112		(5.2	)%
Purchased Power and Fuel											$	403			$	484		(16.7	)%

							% Change
Heating and Cooling Degree-Days	2024		2023		Normal		From 2023		From Normal
Heating Degree-Days	2,089		1,888		2,410		10.6 %		(13.3) %
Cooling Degree-Days	—		—		1		n/a		(100.0) %

Number of Electric Customers	2024		2023		Number of Natural Gas Customers	2024		2023
Residential	1,540,491		1,529,779		Residential	508,429		504,181
Small commercial & industrial	156,475		155,846		Small commercial & industrial	45,038		45,003
Large commercial & industrial	3,160		3,118		Large commercial & industrial	7		9
Public authorities & electric railroads	10,713		10,401		Transportation	646		650
Total	1,710,839		1,699,144		Total	554,120		549,843

__________
	(a)		Reflects delivery volumes and revenues from customers purchasing electricity directly from PECO and customers purchasing electricity from a competitive electric generation supplier as all customers are assessed distribution charges. For customers purchasing electricity from PECO, revenues also reflect the cost of energy and transmission.
	(b)		Includes transmission revenue from PJM, wholesale electric revenue, and mutual assistance revenue.
	(c)		Includes operating revenues from affiliates totaling $2 million and $1 million for the three months ended March 31, 2024 and 2023, respectively.
	(d)		Includes alternative revenue programs and late payment charges.
	(e)		Reflects delivery volumes and revenues from customers purchasing natural gas directly from PECO and customers purchasing natural gas from a competitive natural gas supplier as all customers are assessed distribution charges. For customers purchasing natural gas from PECO, revenue also reflects the cost of natural gas.
	(f)		Includes revenues primarily from off-system sales.
	(g)		Includes operating revenues from affiliates totaling less than $1 million and $1 million for the three months ended March 31, 2024 and 2023, respectively.

BGE Statistics Three Months Ended March 31, 2024 and 2023
	Electric and Natural Gas Deliveries										Revenue (in millions)
	2024		2023		% Change			Weather- Normal % Change				2024			2023		% Change
Electric (in GWhs)
Electric Deliveries and Revenues(a)
Residential	3,329		3,106		7.2	%		(0.6	)%		$	534		$	434		23.0	%
Small commercial & industrial	698		674		3.6	%		0.5	%			90			92		(2.2	)%
Large commercial & industrial	3,114		3,047		2.2	%		(0.2	)%			132			149		(11.4	)%
Public authorities & electric railroads	52		55		(5.5	)%		(3.6	)%			7			7		—	%
Other(b)	—		—		n/a			n/a				93			96		(3.1	)%
Total electric revenues(c)	7,193		6,882		4.5	%		(0.3	)%			856			778		10.0	%
Other Revenues(d)												25			36		(30.6	)%
Total Electric Revenues												881			814		8.2	%
Natural Gas (in mmcfs)
Natural Gas Deliveries and Revenues(e)
Residential	17,981		16,787		7.1	%		(3.9	)%			271			278		(2.5	)%
Small commercial & industrial	3,993		3,768		6.0	%		(3.9	)%			47			41		14.6	%
Large commercial & industrial	13,516		13,214		2.3	%		(2.5	)%			72			70		2.9	%
Other(f)	752		1,608		(53.2	)%		n/a				5			19		(73.7	)%
Total natural gas revenues(g)	36,242		35,377		2.4	%		(3.4	)%			395			408		(3.2	)%
Other Revenues(d)												21			35		(40.0	)%
Total Natural Gas Revenues												416			443		(6.1	)%
Total Electric and Natural Gas Revenues											$	1,297		$	1,257		3.2	%
Purchased Power and Fuel											$	464		$	492		(5.7	)%

							% Change
Heating and Cooling Degree-Days	2024		2023		Normal		From 2023		From Normal
Heating Degree-Days	2,020		1,774		2,355		13.9 %		(14.2) %

Number of Electric Customers	2024		2023		Number of Natural Gas Customers	2024		2023
Residential	1,213,063		1,207,486		Residential	658,818		656,583
Small commercial & industrial	115,406		115,658		Small commercial & industrial	37,982		38,260
Large commercial & industrial	13,110		12,911		Large commercial & industrial	6,336		6,261
Public authorities & electric railroads	261		266
Total	1,341,840		1,336,321		Total	703,136		701,104

__________
	(a)		Reflects revenues from customers purchasing electricity directly from BGE and customers purchasing electricity from a competitive electric generation supplier as all customers are assessed distribution charges. For customers purchasing electricity from BGE, revenues also reflect the cost of energy and transmission.
	(b)		Includes transmission revenue from PJM, wholesale electric revenue, and mutual assistance revenue.
	(c)		Includes operating revenues from affiliates totaling $1 million and $2 million for the three months ended March 31, 2024 and 2023, respectively.
	(d)		Includes alternative revenue programs and late payment charges.
	(e)		Reflects delivery volumes and revenues from customers purchasing natural gas directly from BGE and customers purchasing natural gas from a competitive natural gas supplier as all customers are assessed distribution charges. For customers purchasing natural gas from BGE, revenue also reflects the cost of natural gas.
	(f)		Includes revenues primarily from off-system sales.
	(g)		Includes operating revenues from affiliates totaling $1 million and $1 million for the three months ended March 31, 2024 and 2023, respectively.

Pepco Statistics Three Months Ended March 31, 2024 and 2023
	Electric Deliveries (in GWhs)										Revenue (in millions)
	2024		2023		% Change			Weather- Normal % Change				2024			2023		% Change
Electric Deliveries and Revenues(a)
Residential	2,097		1,963		6.8	%		(0.9	)%		$	345		$	283		21.9	%
Small commercial & industrial	285		267		6.7	%		2.2	%			46			39		17.9	%
Large commercial & industrial	3,293		3,210		2.6	%		0.6	%			262			282		(7.1	)%
Public authorities & electric railroads	162		152		6.6	%		5.8	%			11			8		37.5	%
Other(b)	—		—		n/a			n/a				64			56		14.3	%
Total electric revenues(c)	5,837		5,592		4.4	%		0.3	%			728			668		9.0	%
Other Revenues(d)												31			42		(26.2	)%
Total Electric Revenues											$	759		$	710		6.9	%
Purchased Power											$	281		$	258		8.9	%

							% Change
Heating and Cooling Degree-Days	2024		2023		Normal		From 2023		From Normal
Heating Degree-Days	1,788		1,621		2,078		10.3 %		(14.0) %
Cooling Degree-Days	5		2		3		150.0 %		66.7 %

Number of Electric Customers	2024		2023
Residential	869,606		859,207
Small commercial & industrial	54,177		54,089
Large commercial & industrial	22,992		22,858
Public authorities & electric railroads	207		201
Total	946,982		936,355

__________
	(a)		Reflects revenues from customers purchasing electricity directly from Pepco and customers purchasing electricity from a competitive electric generation supplier as all customers are assessed distribution charges. For customers purchasing electricity from Pepco, revenues also reflect the cost of energy and transmission.
	(b)		Includes transmission revenue from PJM, wholesale electric revenue, and mutual assistance revenue.
	(c)		Includes operating revenues from affiliates totaling $2 million and $1 million for the three months ended March 31, 2024 and 2023, respectively.
	(d)		Includes alternative revenue programs and late payment charge revenues.

DPL Statistics Three Months Ended March 31, 2024 and 2023
	Electric and Natural Gas Deliveries										Revenue (in millions)
	2024		2023		% Change			Weather - Normal % Change				2024			2023		% Change
Electric (in GWhs)
Electric Deliveries and Revenues(a)
Residential	1,487		1,386		7.3	%		(0.4	)%		$	256		$	210		21.9	%
Small commercial & industrial	557		535		4.1	%		0.8	%			62			62		—	%
Large commercial & industrial	973		957		1.7	%		0.4	%			29			33		(12.1	)%
Public authorities & electric railroads	9		11		(18.2	)%		(19.3	)%			4			4		—	%
Other(b)	—		—		n/a			n/a				63			58		8.6	%
Total electric revenues(c)	3,026		2,889		4.7	%		—	%			414			367		12.8	%
Other Revenues(d)												5			10		(50.0	)%
Total Electric Revenues												419			377		11.1	%
Natural Gas (in mmcfs)
Natural Gas Deliveries and Revenues(e)
Residential	3,913		3,581		9.3	%		(1.2	)%			46			60		(23.3	)%
Small commercial & industrial	1,717		1,652		3.9	%		(6.8	)%			17			26		(34.6	)%
Large commercial & industrial	428		414		3.4	%		3.5	%			2			1		100.0	%
Transportation	1,960		1,900		3.2	%		(1.9	)%			5			4		25.0	%
Other(f)	—		—		n/a			n/a				2			6		(66.7	)%
Total natural gas revenues	8,018		7,547		6.2	%		(2.4	)%			72			97		(25.8	)%
Other Revenues(d)												—			—		n/a
Total Natural Gas Revenues												72			97		(25.8	)%
Total Electric and Natural Gas Revenues											$	491		$	474		3.6	%
Purchased Power and Fuel											$	215		$	221		(2.7	)%

Electric Service Territory							% Change
Heating and Cooling Degree-Days	2024		2023		Normal		From 2023		From Normal
Heating Degree-Days	2,112		1,875		2,365		12.6 %		(10.7) %
Cooling Degree-Days	—		—		1		— %		(100.0) %

Natural Gas Service Territory							% Change
Heating Degree-Days	2024		2023		Normal		From 2023		From Normal
Heating Degree-Days	2,204		1,952		2,476		12.9 %		(11.0) %

Number of Electric Customers	2024		2023		Number of Natural Gas Customers	2024		2023
Residential	486,950		482,979		Residential	130,427		129,791
Small commercial & industrial	64,338		63,794		Small commercial & industrial	10,182		10,158
Large commercial & industrial	1,260		1,236		Large commercial & industrial	16		16
Public authorities & electric railroads	593		595		Transportation	163		158
Total	553,141		548,604		Total	140,788		140,123

__________
	(a)		Reflects delivery volumes and revenues from customers purchasing electricity directly from DPL and customers purchasing electricity from a competitive electric generation supplier as all customers are assessed distribution charges. For customers purchasing electricity from DPL, revenues also reflect the cost of energy and transmission.
	(b)		Includes transmission revenue from PJM, wholesale electric revenue, and mutual assistance revenue.
	(c)		Includes operating revenues from affiliates totaling $2 million for both the three months ended March 31, 2024 and 2023.
	(d)		Includes alternative revenue programs and late payment charges.
	(e)		Reflects delivery volumes and revenues from customers purchasing natural gas directly from DPL and customers purchasing natural gas from a competitive natural gas supplier as all customers are assessed distribution charges. For customers purchasing natural gas from DPL, revenue also reflects the cost of natural gas.
	(f)		Includes revenues primarily from off-system sales.

ACE Statistics Three Months Ended March 31, 2024 and 2023
	Electric Deliveries (in GWhs)										Revenue (in millions)
	2024		2023		% Change			Weather - Normal % Change				2024			2023		% Change
Electric Deliveries and Revenues(a)
Residential	841		760		10.7	%		0.3	%		$	174		$	146		19.2	%
Small commercial & industrial	361		371		(2.7	)%		(6.5	)%			50			59		(15.3	)%
Large commercial & industrial	740		789		(6.2	)%		(7.5	)%			49			63		(22.2	)%
Public authorities & electric railroads	14		13		7.7	%		(2.7	)%			5			5		—	%
Other(b)	—		—		n/a			n/a				67			63		6.3	%
Total electric revenues(c)	1,956		1,933		1.2	%		(4.1	)%			345			336		2.7	%
Other Revenues(d)												13			17		(23.5	)%
Total Electric Revenues											$	358		$	353		1.4	%
Purchased Power											$	140		$	148		(5.4	)%

							% Change
Heating and Cooling Degree-Days	2024		2023		Normal		From 2023		From Normal
Heating Degree-Days	2,201		2,008		2,426		9.6 %		(9.3) %
Cooling Degree-Days	—		—		1		— %		(100.0) %

Number of Electric Customers		2024		2023
Residential		505,793		503,260
Small commercial & industrial		62,704		62,230
Large commercial & industrial		2,893		3,030
Public authorities & electric railroads		728		726
Total		572,118		569,246

__________
	(a)		Reflects delivery volumes and revenues from customers purchasing electricity directly from ACE and customers purchasing electricity from a competitive electric generation supplier as all customers are assessed distribution charges. For customers purchasing electricity from ACE, revenues also reflect the cost of energy and transmission.
	(b)		Includes transmission revenue from PJM, wholesale electric revenue, and mutual assistance revenue.
	(c)		Includes operating revenues from affiliates totaling $1 million for both the three months ended March 31, 2024 and 2023.
	(d)		Includes alternative revenue programs.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240502154529/en/

James Gherardi

Corporate Communications

312-394-7417



Andrew Plenge

Investor Relations

312-394-2345

Source: Exelon Corporation

FAQ

What is Exelon's stock symbol?

Exelon's stock symbol is EXC.

What were Exelon's first quarter 2024 GAAP Net Income and Adjusted Operating Earnings per share?

Exelon reported a GAAP Net Income of $0.66 per share and Adjusted Operating Earnings of $0.68 per share for the first quarter of 2024.

What is Exelon's full-year 2024 Adjusted Operating Earnings guidance range?

Exelon affirmed a full-year 2024 Adjusted Operating Earnings guidance range of $2.40-$2.50 per share.

What is Exelon's fully regulated operating EPS growth target from 2023 to 2027?

Exelon reaffirmed a fully regulated operating EPS growth target of 5-7% from 2023 to 2027.

Which utilities achieved top reliability performance according to Exelon's report?

ComEd and PHI achieved top decile in both outage frequency and outage duration in the first quarter of 2024.